Another Paradox of Thrift - low interest rates could encourage saving

The Buttonwood column in this week’s Economist has an interesting article on the fact that low interest rates, which have the main aim of encouraging spending, could have the perverse effect of encouraging saving. The article refers to a new cultural shift - we used to talk of borrow now, pay later but a more appropriate expression might be save now, rather than starve later. Click here for the article.